MIRA
INFORM REPORT
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Report Date : |
19.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
PRASOL CHEMICALS LIMITED |
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Formerly Known As : |
Prachi Poly Products Limited |
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Registered Office : |
'Prasol House', A/17/2/3, TTC Industrial Area, MIDC Khairne, Thane
Belapur Road, Navi Mumbai - 400 710, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.01.1992 |
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Com. Reg. No.: |
65026 |
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CIN No.: [Company
Identification No.] |
U99999MH1992PLC065026 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP06256F |
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PAN No.: [Permanent
Account No.] |
AAACP2389N |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer and supplier of chemicals &
pharmaceuticals and lubricant oil additives. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 430000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track /. Trade relations are fair. Business is active. Payments are reported
as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
'Prasol House', A/17/2/3, TTC Industrial Area, MIDC Khairne, Thane Belapur
Road, Navi Mumbai - 400 710, Maharashtra, India |
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Tel. No.: |
91-22-2778 2555 |
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Fax No.: |
91-22-2778 2430 |
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E-Mail : |
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Website : |
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R & D Division : |
Plot No. A-17/2/3, T.T.C. Industrial Area,
Khairne, M. I. D. C, Navi Mumbai - 400 701 |
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Tel. No.: |
91-22-30907194 / 27782430 / 27782555 |
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Hazardous Chemical Warehouse : |
Located at Navi Mumbai |
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Factory : |
Takai Adoshi Road, Tehsil: Khalapur, Honad Village, Khopoli, District Raigad,
Maharashtra |
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Tel. No.: |
91-2192-266061 |
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Fax No.: |
91-2192-264125 |
DIRECTORS
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Name : |
Mr. Nishith R. Shah |
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Designation : |
Executive Chairman |
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Name : |
Mr. Bhisham K. Gupta |
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Designation : |
Managing Director |
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Name : |
Mr. Jatin N. Parikh |
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Designation : |
Finance |
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Name : |
Mr. Gaurang N. Parikh |
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Designation : |
Import / Export |
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Name : |
Mr. Sharad D. Mehta |
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Designation : |
Director |
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Name : |
Mr. Suketu N. Parikh |
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Designation : |
Director |
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Name : |
Mr. Tushar N. Dharia |
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Designation : |
Director |
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Name : |
Mr. Nishith R. Dharia |
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Designation : |
Director |
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Name : |
Ms. Dipti N. Parikh (upto 31st May, 2007) |
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Designation : |
Director |
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Name : |
Mr. Dhaval N. Parikh |
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Designation : |
Director |
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Date of Appointment : |
31.05.2007 |
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Name : |
Mr. Mangalshi M. Amarshi |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and supplier of chemicals &
pharmaceuticals and lubricant oil additives. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Phosphorus
Compounds |
(Tonnes) |
9,600 |
4,265 |
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Acetone
Compounds |
(Tonnes) |
3,000 |
2,569 |
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Others |
(Tonnes) |
N.A. |
533 |
GENERAL
INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rajeev Shah and Company, Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 40.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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17,46,757 |
Equity Shares |
Rs. 10/- each |
Rs. 17.468
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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17.468 |
17.468 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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90.969 |
72.767 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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108.437 |
90.235 |
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LOAN FUNDS |
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1] Secured Loans |
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91.618 |
26.423 |
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2] Unsecured Loans |
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9.002 |
6.920 |
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TOTAL BORROWING |
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100.620 |
33.343 |
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DEFERRED TAX LIABILITIES |
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15.435 |
13.060 |
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TOTAL |
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224.492 |
136.638 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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114.639 |
94.982 |
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Capital work-in-progress |
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56.494 |
4.799 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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42.772 |
32.900 |
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Sundry Debtors |
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91.231 |
61.994 |
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Cash & Bank Balances |
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7.006 |
5.353 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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39.854 |
27.648 |
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Total
Current Assets |
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180.863 |
127.895 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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99.165 |
70.141 |
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Provisions |
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28.339 |
20.903 |
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Total
Current Liabilities |
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127.504 |
91.044 |
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Net Current Assets |
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53.359 |
36.851 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.006 |
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TOTAL |
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224.492 |
136.638 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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435.023 |
338.235 |
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Other Income |
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2.135 |
0.524 |
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Total Income |
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437.158 |
338.759 |
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Profit/(Loss) Before Tax |
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40.014 |
35.589 |
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Provision for Taxation |
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13.704 |
12.523 |
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Profit/(Loss) After Tax |
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26.310 |
23.066 |
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Earnings in Foreign Currency : |
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Export Earnings |
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35.268 |
30.958 |
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Commission Earnings |
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0.114 |
0.000 |
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Total Earnings |
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35.382 |
30.958 |
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Imports : |
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Raw Materials |
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179.587 |
136.486 |
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Total Imports |
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179.587 |
136.486 |
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Expenditures : |
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Material Cost |
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306.722 |
230.057 |
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Conversion Cost |
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37.691 |
32.421 |
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Personnel Expenditure |
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12.761 |
9.622 |
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Administrative Expenditure |
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11.395 |
9.643 |
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Selling & Distribution
Expenditure |
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14.110 |
9.304 |
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Interest & Rnancial
Charges |
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8.468 |
6.945 |
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Depreciation |
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5.990 |
5.146 |
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Miscellaneous Expenditure |
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0.007 |
0.032 |
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Total Expenditure |
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397.144 |
303.170 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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6.02 |
6.81 |
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Net Profit Margin (PBT/Sales) |
(%) |
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9.20 |
10.52 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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13.54 |
15.97 |
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Return on Investment (ROI) (PBT/Networth) |
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0.37 |
0.39 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.10 |
1.38 |
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Current Ratio (Current Asset/Current Liability) |
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1.42 |
1.40 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
OPERATIONS:
The Company's
performance for the year 2006-07 showed a remarkable improvement as compared
to, the previous year. The Company's turnover (including Excise Duty & Taxes
) amounted to Rs. 5.093 Millions an increase of 28%. The Profit After Tax
amounted to Rs. 26.300 Millions an increase of 14% as compared to the previous
year. The Company's margins were under pressure due to increase in material
costs and higher operational expenses. All efforts are being made to improve
margins and profitability by implementing cost control measures and alteration
of product mix.
The Company is
undertaking capacity expansion of the Di-acetone Alcohol. As a result of these
projects, the installed manufacturing capacity of the company will go up. The
company has also acquired additional land admeasuring 7.5 acres in areas nearby
to its existing plant for its future projects.
FUTURE PLAN :
The Company's
R&D Laboratory is developing manufacturing processes for various chemicals.
It proposed also to undertake contract research work for chemical processes.
Products developed by our R&D have been approved by MNC and we are
negotiating Annual contract for manufacture in coming years.
These new project
would substantially increase the turnover and profits of the Company in the
coming years.
RIGHT ISSUE :
In order to
finance part of the capital expenditure for setting up new plants and expansion
of capacities, for funding additional working capital requirements and for
redeeming high-cost debts, the directors have proposed to make an offer for
issue of right shares of Rs. 10/- each, fully paid to the members in the ratio
of one share for every four shares held at a premium of Rs. 40/- per share. The
issue opens on 18th June, 2007 and closes on 4" July, 2007.
ALTERATION OF MAIN
OBJECTS AND CHANGE OF NAME :
During the period
under report, the Company after obtaining suitable approvals altered its main
objects and changed its name from 'Prachi Poly Products Limited1 to 'Prasol
Chemicals Limited’ to better reflect the business of the Company.
FIXED ASSETS
- Land
- Office
Building
- Factory
Building
- Lab Equipment
- Air
Conditioner
- Telephone
System
- Office
Equipment
- Plant &
Machinery
- Electricals
- Utilities
- Furniture
& Fixture
- Vehicles
- Computers
- Cycle
- Xerox Machine
- Computer
Software
- Dish Antenna
Contingent Liability:
a) Bank Guarantee
Outstanding as on 31st March, 2007 Rs. 0.235 Million (Previous year:
0.310 Million).
b) Outstanding LC (Andhra
Bank) as on 31st March, 2007, Rs. 1.798 Millions (Previous
Year : 47.196 Millions)
c) Outstanding LC
(Citi Bank) as on 31st March, 2007. Rs. 17.848 Millions (Previous
Year: Nil/-)
AS PER WEBSITE
Profile
Subject (ISO 9001:2000 Certified, BVQI, London) was
incorporated in 1992 as a Private Limited Company and converted into a Public
Limited Company in 1995. The company was started by a group of technocrats with
a mission to create social and economic benefits through aggressive expansion
of both domestic and international markets and impovement of capital
utilization.
Subject employs workforce of more than two hundred who are
working on beautiful surroundings of their factory at Khopoli, which is 60 Kms
east of Commercial Capital of India - Mumbai. The total occupied area of Prasol
is 6 Acres with production plants of Phosphorus Pentasulphide, Diacetone
Alcohol, Phosphorus Pentoxide, Food Grade Phosphoric Acid and auxillary
facility includes steam, water, electricity generation, LDO handling, air
separation and compression, chilling, thermopack unit, maintenanace,
fabrication and raw material purification etc.
Subject is well established in the local chemical and pharmaceuticals and
lubricant oil additive markets as a reputed and consistent manufacturer and
supplier. Their R&D laboratory at Khopoli, India is thrusting on tough
quality checks of the production batches and striving for an improved product.
Based on markets and customers requirements, Prasol provides the perfect
service to the domestic and foreign customers.
Subject has commercialized the multi product facility
manufacturing various chemicals like Alkyl Phenol, Lubircant Additive &
other speciality chemicals. The reactions mastered are alkylation,
etherfication, esterfication etc. All equipments are of SS which include
reactors, two stage vaccum enabled distillation columns with structured Sulzer
packing. Thermax make hot oil system along with storage tanks, cooling towers
etc.
Subject is also well established in trading of many
chemicals whereby niche chemicals are imported for local market and other
chemicals are exported globally.
Subject's associate companies are pioneer in industrial heat
treatment, chemical equipment manufacturing like columns, heat exchangers, LPG
Bullets etc. and heat treatment equipment.
Commercial competitiveness and quality consciousness are
traits, which characterize all the Group Companies. The Prasol belief in
"Customers first, Reputation first" is one which emphasizes the
importance of customer satisfaction both in product quality and after sales
service. Strict Adherence to ISO 9001:2000 standards helps ensure high quality
standards and consequent high level of customer satisfaction.
The people at Prasol are dynamic and committed. For them,
upholding the company's reputation is not just part of the job, it is a
mission. There is an ongoing quest for excellence and they are amply supported
by the management's emphasis on enhanced communications with clients and staff.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.66 |
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UK Pound |
1 |
Rs.77.79 |
|
Euro |
1 |
Rs.58.22 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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48 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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